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Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows.

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Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows. Direct materials $29,000 Variable overhead $44,400 Direct labor $28,644 Fixed overhead $82,000 Instead of making the switches at an average cost of $2.94 ($184,044 = 62,600), the company has an opportunity to buy the switches at $2.69 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Would your answer be different if the released productive capacity will generate additional income of $50,160? (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Total Cost $ $ Opportunity cost Total cost the answer is The analysis shows that net income will be by $ Save for later Attempts: 0 of 1 used Submit

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